Way back on June 24 we analyzed the charts of Costco (COST) and recommended that "Traders could go long or add to longs at current levels. Risk to $369. The $532 area is our price objective." Now that COST has passed $502 in price our $532 target does not seem all that far away.
Let's check the charts again.
In this updated daily bar chart of COST, below, we can see that prices have been very strong since our June review. COST is trading above the rising 50-day moving average line and the bullish 200-day average line.
The On-Balance-Volume (OBV) line has moved up to a new high to confirm and support the big price gains we have seen thus far this year. The Moving Average Convergence Divergence (MACD) oscillator is bullish and pointed higher.
In this weekly Japanese candlestick chart of COST, below, we see a bullish picture. No signs of a top reversal. Strong and rising 40-week moving average line. Bullish OBV line and MACD oscillator.
In this daily Point and Figure chart of COST, below, we can now see a price target in the $622 area.
In this weekly close only Point and Figure chart of COST, below, a $759 price target is shown.
Bottom line strategy: Continue to hold your longs in COST. These kinds of gains can make your investing year. $532 is our nearest price target followed by $622 and then $759. Raise stops to $445 from $369.
(Costco is a holding in the Action Alerts PLUS member club. Want to be alerted before AAP buys or sells COST? Learn more now.)
